NetWorth

NetWorth Services, Inc. (NWS), a leading Fin/Regtech innovator, offers a comprehensive suite of cloud-based investment tax solutions powered by its patented Netbasis engine. Netbasis revolutionizes investment tax and wealth management by accurately calculating the adjusted cost basis of any investment, whether digital or traditional, irrespective of complex corporate actions.

The new IRS cryptocurrency regulation marks a significant shift in the financial landscape, integrating digital assets into the mainstream. This regulation mandates stringent cost basis reporting requirements for digital asset platforms, ATS exchanges, and specific intermediaries, mirroring those established for traditional securities in 2011. This move aims to significantly boost federal revenues by curbing non-compliance in crypto markets.

The complexities of cryptocurrency transactions are further amplified by the proposed Lummis-Gillibrand Responsible Financial Innovation Act, which seeks to establish a comprehensive regulatory framework for digital assets and extend the Wash Sale Rule to cryptocurrencies. Existing digital asset reporting vendors struggle to handle the intricate scenarios of wash sale violations and loss deferral assignments. However, Netbasis excels in this domain, adeptly managing 23 of the most complex wash sale violation events and tracking transactional history across various exchanges and wallets to precisely determine adjusted gains or deferred losses.

Netbasis is primed for substantial growth in 2025-26, leveraging its unique competitive advantages. Its proprietary NetZero sales method empowers users to strategically offset gains and losses, optimizing tax outcomes. With millions of potential customers needing to report current and past transactions to comply with the new IRS regulations, NetZero becomes an indispensable tool for minimizing tax liabilities.

In addition, Netbasis' AI Assistant offers real-time guidance on product features and capabilities, enabling investors to maximize the application's potential. The platform also provides innovative pre-sale tax strategy simulations for individual trades, helping investors achieve tax-efficient positions when selling. All trades are meticulously recorded in a sophisticated, security-encrypted system that can automatically populate IRS Form 8949. This comprehensive service significantly reduces costs for CPAs and streamlines the management of cryptocurrency trades for tax purposes.

Netbasis plans to extend this robust solution, along with its rapid cost basis tax reporting batch processing service (Netbatch), to all institutional clients in the digital asset space. Netbatch can efficiently process millions of records for 1099-DA tax reporting, scheduled for the 2026 tax year. Netbasis' strategic approach involves combining its solution suite into an end-to-end offering. By adopting this proprietary B-to-B-to-C model, Netbasis is strategically positioned to generate substantial revenue by delivering this invaluable service to potentially tens of millions of individuals engaged in complex trading activities across diverse platforms and exchanges.